A fresh storm has hit the crypto sector as blockchain investigator ZachXBT levels serious accusations against Garden Finance, a platform that brands itself as the fastest Bitcoin bridge in the market. According to ZachXBT, the bridge has allegedly become a key tool for laundering funds tied to some of the crypto world’s most notorious hacks, putting the project’s decentralization claims under intense scrutiny.

Allegations of laundering through Bitcoin bridging

In a detailed post shared on X, ZachXBT claimed that more than 80% of Garden Finance’s recent fee income was generated through transactions linked to illicit activities. The investigator pointed the finger at flows allegedly associated with the infamous North Korean Lazarus Group, particularly highlighting funds stemming from the high-profile Bybit hack.

ZachXBT’s post came as a direct response to Garden Finance co-founder Jaz Gulati, who had proudly shared the platform’s recent growth, including over 38 Bitcoin in fees — roughly $300,000 — collected within a short 12-day span. However, ZachXBT suggested that these numbers omitted critical context about the source of those earnings.

“You conveniently left out that over 80% of your fees came from Chinese launderers moving Lazarus Group funds from the Bybit hack,” ZachXBT said, casting doubt on the integrity of Garden Finance’s operations.

Centralized liquidity at odds with decentralization narrative

The accusations didn’t stop at the origin of the fees. ZachXBT also questioned the project’s claims of operating a decentralized, trustless bridge. According to him, real-time monitoring revealed that a single entity repeatedly topped up the platform’s Bitcoin liquidity from Coinbase, centralizing what was marketed as a decentralized ecosystem.

This raised concerns that Garden Finance’s model might not align with the principles of decentralization that the crypto community holds dear, especially when such structures can be exploited to facilitate illicit flows on a large scale.

Garden Finance defends itself

In response to the allegations, Garden Finance’s co-founder sought to set the record straight. Gulati argued that the platform had accumulated 30 BTC in fees well before the Bybit hack took place. He labeled the criticism as misinformation and dismissed the suggestion that Garden Finance is a “fake decentralized” project.

Garden Finance continues to promote its core offering — enabling cross-chain swaps within 30 seconds while claiming to provide zero-custody risk to users. According to on-chain data via Dune Analytics, the bridge has processed over 24,900 BTC, equivalent to more than $1.5 billion in volume, across 40,000+ swaps.

Despite these figures, the platform now faces growing pressure to demonstrate its commitment to transparency and adherence to decentralized principles.

Laundering in crypto under renewed spotlight

The Garden Finance controversy comes amid broader concerns about crypto’s role in global money laundering schemes. Just last week, US authorities arrested Iurii Gugnin, the founder of Evita Pay, on charges connected to laundering over $530 million through stablecoin transactions. Prosecutors allege that Gugnin’s firm helped sanctioned Russian banks bypass restrictions and facilitated access to sensitive US technologies.

These events highlight the regulatory challenges facing the crypto industry. As blockchain technology enables rapid, cross-border transactions, malicious actors continue to exploit loopholes and weak points in decentralized finance systems.

The importance of transparency in crypto bridges

This episode serves as a reminder that projects operating at the intersection of chains must build trust through transparency, both in their technology and in their business practices. While Bitcoin bridges like Garden Finance offer compelling solutions for interoperability, they also carry the responsibility of ensuring their infrastructure is not misused for criminal activities.

As regulatory scrutiny tightens globally, the spotlight will remain on platforms that fail to address such risks proactively. The crypto industry must balance innovation with accountability to maintain its legitimacy in the eyes of both regulators and the broader public.

Final thoughts

The allegations against Garden Finance, whether proven or not, underscore the ongoing tension between decentralization ideals and the realities of operating within a complex, high-stakes financial ecosystem. For users and investors alike, the key lesson is clear: trust must be earned not through marketing claims, but through verifiable transparency and robust safeguards against misuse.